A Victory for Energy Efficiency

The Alliance is thrilled to report a last-minute victory on one of our main priorities for 2008, the renewal and extension of federal energy efficiency tax incentives, which were included in the unexpected economic rescue plan that passed October 3. Described in the Alliance's fact sheet, the tax incentives will provide energy-efficient products and technologies traction in the marketplace.

H.R. 1424, the Emergency Economic Stabilization Act of 2008, contains new and renewed tax incentives for consumers and businesses who purchase and implement energy-efficient products and technologies. Originally enacted as part of the Energy Policy Act of 2005, the incentives encourage the purchase of highly efficient heating and cooling equipment, appliances, hybrid and diesel vehicles and commercial buildings and new homes.

Added to this list are incentives for combined heat and power, electric and plug-in hybrid vehicles, truck-idling reduction, bicycling and smart meters and smart grid development. These incentives are designed to speed the introduction of energy-efficient technologies into the marketplace by helping niche products with new, efficient technologies overcome steep market barriers and move into the mainstream - thus enabling them to better flourish in the market when the tax incentives end.

The extension and renewal of these incentives is a major victory for the Alliance, who with a coalition of efficiency and environmental advocates, worked tirelessly to garner political support for their extension before the adjournment of the 110th Congress. But ours is a shared victory: for consumers, builders, efficiency and environmental advocates and technology developers alike, the extension and renewal of these tax credits marks substantial progress in the creation of a energy-efficient nation. We invite you to learn more about the tax incentives that were renewed, extended and created under H.R. 1424.